Top lithium producer plans more auctions for market transparency and stability.

Albemarle,What does yen mean the world's largest lithium producer, plans to hold more lithium metal auctions to enhance price transparency and foster a better understanding of this opaque market. The metal is used in electric vehicle batteries. On Tuesday, company executives stated that this move is one of the industry's most proactive efforts to clarify the generally chaotic lithium pricing. This initiative will also help better support supply contracts with automakers who urgently need fresh and stable supplies.

Eric Norris, head of Albemarle's energy storage business, told Reuters during the Fastmarkets Lithium Supply and Battery Raw Materials conference in Las Vegas: "We are working hard to build trust."

Although lithium has skyrocketed in popularity over the past decade, futures pricing in market leader China is perplexing, leading to unclear global benchmark prices. Last year, the plunge in Chinese prices dragged down the stock prices of Albemarle and other Western lithium producers, highlighting this issue.

The London Metal Exchange has yet to launch its long-planned lithium futures contract, and trading volumes for lithium contracts on the Chicago Mercantile Exchange Group are far below those of copper and other critical minerals.

To address price uncertainty, Norris stated that Albemarle auctioned some Australian lithium supplies in March and now plans to promote this practice globally.

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